ACTIVITY DRIVERS Definition

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ACTIVITY DRIVERS, in activity based costing (ABC), activity costs are assigned to outputs using activity drivers. Activity drivers assign activity costs to outputs based on individual outputs' consumption or demand for activities. For example, a driver may be the number of times an activity is performed (transaction driver) or the length of time an activity is performed (duration driver) see DURATION DRIVERS, INTENSITY DRIVERS, TRANSACTION DRIVERS.

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MANAGED RECEIVABLES is the total receivable amounts on which a company continues to perform billing and collection activities, including receivables that have been sold with and without credit recourse and are no longer reported on the balance sheet. See OWNED RECEIVABLES.

ECONOMIC BOOK VALUE (EBV) allows for a book value analysis that adjusts the assets to their market value. This valuation allows valuation of goodwill, real estate, inventories and other assets at their market value.

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